manoj e dm ppt (1)

8/8/2019 MANOJ E DM PPT (1)

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ERRORS IN DECISION MAKING

MANOJ KUMAR PANDEY

NPTI, MBA (2010-12)


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CONTENT

DECISION MAKING

FLOWCHART DECISION MAKING ERRORS IN DECISION MAKING

CONTIGENCY AND PERSONAL

BIASNESS IN DECISION MAKING

RECTIFYING THE ERRORS


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DECISION MAKING

DECISION MAKING :-

The process of examiningyour possibilities and

options ,comparing them

and choosing a course

of action.


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FLOW CHART OF DECISION

MAKING PROCESS

DEFINETHE

PROBLEMS

EVALUATE THE

ALTERNATIVES

IMPLIMENTTHE

ALTERNATIVES

FOLLOW-UP &EVALUATE

THECHOOSEN

ALTERNATIVE

SELECT THEBEST

ALTERNATIVE

GATHERFACTS &DEVELOP

ALTERNATIVE


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ERRORS

Failure to Recognize a Problem

Incorrect Problem Identification

Insufficient Consideration of Alternatives Inadequate Evaluation of Risk

Repetitive Decisions

Unnecessary Decisions

Delayed Decisions

Lack of Follow-up


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Failure to Recognizea Problem

Operation on a frantic day-to-day basis without

recognizing a problem. Overlooking the responsibilities.

Due to lack of experience.

By recognizing the problem in the way that it

carries obligation to do something.


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Incorrect Problem Identification

Unable to identify basic reasons due to which

problem occurs.

Due to inaccurate perceptions and lack of

experience.


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Insufficient Consideration of

Alternatives

Failure in generating alternative

solutions for a problem.

Lack of attention in carefully

cosidering the alternatives.


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Inadequate Evaluation ofRisk

Failure in calculating the risk involve in

particular decision in terms of :-

i. Costs and benefits.

i. The risks involved and results to be obtained.


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Handling the same problem over and over &making decisions in each instance on a case-

by-case basis.

Repetitive Decisions


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Unnecessary Decisions

To take action may only subject, one to

unnecessary risk- risk that could be avoidedthrough action in inaction.

When the no-action approach is used, one

should continue to observe the situation and

take action if it is merited.


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Delayed Decisions

Fast-but not snap: such decisions have at leasttwo advantages-

(A) An expeditious decision gives more time tocorrect a situation .

(B)A quick decision allows to move on to otherproblem areas.


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Lack ofFollow-up

Each implementation should be followed

through to see if it is producing the expectedresult.


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CONGINITVE AND PERSONAL

BIASES


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ERRORSANDBIASES

INERTIAOVER-

CONFIDENCESELECTIVE

PERCEPTION

ANCHORING

EFFECT RECENCY

REPETITIONBIAS

CHOICESUPPORTIVE

BIAS

GROUP-THINK


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Objectives must first be established.

Objectives must be classified and placed in

order of importance. Alternative actions must be developed.

The alternative must be evaluated against all

the objectives.

The alternative that is able to achieve all the

objectives is the tentative decision.


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The tentative decision is evaluated for more

possible consequences.

The decisive actions are taken, and additionalactions are taken to prevent any adverse

consequences from becoming problems and

starting both systems (problem analysis and

decision making) all over again.


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THANK YOU !!!

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manoj e dm ppt (1)

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